A ferry that capsized and partially sank in a typhoon in the Philippines killing more than 800 people is to be refloated in an effort to recover the bodies and ten tonnes of toxic pesticide.

Officials from the taskforce responsible for retrieving more than 700 bodies of passengers and crew from inside the wreck of the 23,824-tonne ship decided that raising the hulk was the safest option.

Naval divers from the Philippines and the US had to halt operations on the MV Princess of the Stars last Friday after it emerged the ship had tonnes of endosulfan pesticide in the hold, posing a lethal risk to the rescuers if it leaked.

A Philippines air force helicopter today circled the stricken ferry - whose upturned bows still jut out of the sea - dropping pink, yellow and white flowers to mark the end of the diving operation.

The ferry sank 11 days ago after suffering engine failure and running aground on a sandbank off Sibuyan Island in the central Philippines. It ran into Typhoon Fengshen, which whipped up seas with winds of up to 120mph. Just 57 of 863 people aboard survived.

The rescuers abandoned plans to cut a hole in the ship's hull because of the risk the agricultural chemicals posed to the divers and the marine environment, though no contamination has been discovered so far.

"We have made a decision that we want to just refloat the vessel," said Elena Bautista, head of a government taskforce handling the disaster. "It's the best way to get all the bodies out and the cargo and dangerous goods inside."

Talks were underway with the ferry's owners, Sulpicio Lines, to determine the best way to refloat it - which will take up to three months - following a cabinet meeting chaired by President Gloria Macapagal Arroyo.

In 2004, a Philippines passenger ship, SuperFerry 14, was refloated six months after it was bombed by terrorists. The container ship Napoli, beached off Devon, was raised by a floating crane last July after water was pumped from flooded compartments.